CSHB 281(FIN): "An Act relating to the financing of construction of public school facilities, facilities for the University of Alaska, and facilities for ports and harbors; authorizing the commissioner of revenue to sell the right to receive a portion of the anticipated revenue from a certain tobacco litigation settlement to the Alaska Housing Finance Corporation; relating to the deposit of certain anticipated revenue from a certain tobacco litigation settlement; authorizing the issuance of bonds by the Alaska Housing Finance Corporation with proceeds to finance public school construction, facilities for the University of Alaska, and facilities for ports and harbors; providing for the creation of subsidiary corporations of the Alaska Housing Finance Corporation for the purpose of financing or facilitating the financing of public school construction, facilities for the University of Alaska, and facilities for ports and harbors; and providing for an effective date."
00CS FOR HOUSE BILL NO. 281(FIN) 01 "An Act relating to the financing of construction of public school facilities, 02 facilities for the University of Alaska, and facilities for ports and harbors; 03 authorizing the commissioner of revenue to sell the right to receive a portion of 04 the anticipated revenue from a certain tobacco litigation settlement to the Alaska 05 Housing Finance Corporation; relating to the deposit of certain anticipated revenue 06 from a certain tobacco litigation settlement; authorizing the issuance of bonds by 07 the Alaska Housing Finance Corporation with proceeds to finance public school 08 construction, facilities for the University of Alaska, and facilities for ports and 09 harbors; providing for the creation of subsidiary corporations of the Alaska 10 Housing Finance Corporation for the purpose of financing or facilitating the 11 financing of public school construction, facilities for the University of Alaska, and 12 facilities for ports and harbors; and providing for an effective date." 13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 14 * Section 1. The uncodified law of the State of Alaska is amended by adding a new
01 section to read: 02 INTENT. It is the intent of the legislature that the sale of a portion of the revenue 03 derived from tobacco settlement litigation described under sec. 3(a) of this Act result in 04 funding of $1,400,000 annually for smoking education and cessation programs administered 05 by the state. It is also the intent of the legislature that tobacco settlement revenues that are 06 determined by the commissioner of revenue to be in excess of those needed to pay planned 07 debt service on tobacco bonds be deposited into the general fund. 08 * Sec. 2. AS 18.56 is amended by adding a new section to read: 09 Sec. 18.56.086. Creation of subsidiaries. The corporation may create 10 subsidiary corporations for the purpose of financing or facilitating the financing of 11 school construction, facilities for the University of Alaska, or facilities for ports and 12 harbors. A subsidiary corporation created under this section may be incorporated 13 under AS 10.20.146 - 10.20.166. The corporation may transfer assets of the 14 corporation to a subsidiary created under this section. A subsidiary created under this 15 section may borrow money and issue bonds as evidence of that borrowing and has all 16 the powers of the corporation that the corporation grants to it. Unless otherwise 17 provided by the corporation, the debts, liabilities, and obligations of a subsidiary 18 corporation created under this section are not the debts, liabilities, or obligations of the 19 corporation. 20 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section 21 to read: 22 SALE OF RIGHT TO RECEIVE ANTICIPATED SPECIAL REVENUE. (a) The 23 commissioner of revenue is authorized to sell to the Alaska Housing Finance Corporation the 24 right to receive all but $1,400,000 annually of the revenue derived from the settlement of State 25 of Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915CI (Alaska Super. 1997) up to 26 the amount needed to yield $269,000,000 in proceeds from bonds sold at investment grade 27 rates. In this subsection, "investment grade rates" means a Moody's Investor Service rating 28 of Baa3 or better or a Standard and Poors and Fitch IBCA rating of BBB- or better. 29 (b) The proceeds of the sale of the right to receive revenue sold under (a) of this 30 section are anticipated to be $269,000,000. 31 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section
01 to read: 02 BOND AUTHORIZATION AND PROVISIONS. (a) Notwithstanding the limitation 03 in AS 18.56.090 or other provisions of law, the Alaska Housing Finance Corporation or a 04 subsidiary corporation created under AS 18.56.086 is authorized to issue revenue bonds in 05 principal amounts sufficient to acquire the right to receive revenue described in sec. 3 of this 06 Act from the commissioner of revenue at a price agreed upon by the Alaska Housing Finance 07 Corporation and the commissioner of revenue. The bonds may be special, limited obligations 08 of the Alaska Housing Finance Corporation or of the subsidiary corporation secured solely by 09 the right to receive revenue sold to the Alaska Housing Finance Corporation under sec. 3 of 10 this Act, and the Alaska Housing Finance Corporation or the subsidiary corporation may 11 include in agreements with the bondholders a pledge of the right to receive that revenue and 12 the promise of the state to honor that pledge. 13 (b) Subject to agreements with bondholders and appropriation as described in (c) of 14 this section, the Alaska Housing Finance Corporation shall make the proceeds of the bonds 15 issued under (a) of this section available to the 16 (1) Department of Education and Early Development to pay for expenditures 17 described in (c)(1) of this section, including reimbursement to the Department of Education 18 and Early Development for the expenditures; 19 (2) University of Alaska to pay for expenditures described in (c)(2) of this 20 section, including reimbursement to the University of Alaska for the expenditures; and 21 (3) Department of Transportation and Public Facilities to pay for expenditures 22 described in (c)(3) of this section, including reimbursement to the Department of 23 Transportation and Public Facilities for the expenditures. 24 (c) Subject to appropriation and (d) of this section, the proceeds of bonds issued under 25 (a) of this section shall be used by the 26 (1) Department of Education and Early Development to pay for construction, 27 renovation, and improvement of public elementary and secondary schools as follows: 28 PROJECT 29 Petersburg - Fascia/Soffit Repair/Replacement $ 112,960 30 Kake City - Kake Elementary School Addition 2,237,460 31 Juneau Schools
01 Auke Bay Elementary Roof Replacement 653,842 02 Marie Drake Roof Replacement 599,501 03 Harborview Elementary Gym Roof Replacement 106,604 04 High School Heating/Ventilation 65,303 05 High School Auxiliary Gym Floor Replacement 109,386 06 Floyd Dryden School Gym Floor 108,236 07 Gastineau Elementary Heating Coil Replacement 133,053 08 Floyd Dryden Middle School Renovation 3,629,683 09 Kodiak Island Schools 10 Peterson Elementary Addition 756,000 11 Kodiak High School 1,106,875 12 Kenai/Soldotna Schools 13 McNeil Elementary Wastewater Plant 225,300 14 Kenai Central High School Reinsulate Exterior Walls 367,648 15 Anchorage Schools 16 Bartlett High School, Phase I 3,500,000 17 Eagle River/Chugiak High School 14,563,500 18 East High School, Phase I 7,295,400 19 Service High School, Phase I 4,998,000 20 Wendler Middle School, Phase I 4,231,500 21 Denali Elementary, Replacement 8,211,000 22 District Wide Projects/Major Maintenance 11,730,600 23 Matanuska-Susitna Schools 24 Matanuska-Susitna - Fire Alarm System - Five Schools 620,648 25 Matanuska-Susitna - Colony High School Septic System 159,416 26 Matanuska-Susitna - Fuel Tank Replacement 126,261 27 Matanuska-Susitna - Fire Sprinklers and Piping (3) 1,381,770 28 Matanuska-Susitna - Boiler/Heater Replacement 221,051 29 - Four Schools 30 Matanuska-Susitna - Carpet Replacement - six schools 423,507 31 Fairbanks North Star Borough Schools
01 District Wide Projects/Major Maintenance 750,000 02 Lower Yukon - Pilot Station School Replacement 17,654,003 03 Lower Yukon - Kotlik School Replacement 17,910,901 04 Kashunamiut - Chevak School Replacement 28,272,551 Northwest Arctic Schools 05 Ambler K-12 Improvements 924,586 06 Kiana K-12 Improvements 1,395,000 07 Bering Strait Schools 08 Elim School, Phase III 12,146,788 09 Southwest Region Schools 10 Manokotak School Replacement 14,689,464 11 Pribilof Island - St. George School Remodel 4,385,970 12 TOTAL $165,803,767 13 (2) University of Alaska to pay for construction and renovation of university 14 facilities as follows: 15 PROJECT 16 University of Alaska - Southeast 17 Deferred Maintenance, Renewal and Replacement, $1,687,854 18 Code Compliance 19 University of Alaska - AVTEC Seward 20 Student Housing 4,200,000 21 University of Alaska - Anchorage 22 Consortium Library 36,000,000 23 Deferred Maintenance, Renewal and Replacement, 4,220,000 24 Code Compliance 25 Matanuska-Susitna Ortner Building Replacement 685,000 26 University of Alaska - Fairbanks 27 Deferred Maintenance, Renewal and Replacement, 25,199,054 28 Code Compliance __________ 29 TOTAL $71,991,908 30 (3) Department of Transportation and Public Facilities to pay for construction 31 and renovation of port and harbor facilities as follows:
01 PROJECT 02 Ketchikan $ 7,000,000 03 Petersburg 3,300,000 04 Juneau Area Harbors 05 Auke Bay Harbor 492,325 06 Douglas Dock/Harbor 1,241,421 07 Taku Harbor 38,566 08 Klawock 860,000 09 Seldovia 2,500,000 10 Whittier 1,835,600 11 Valdez 3,013,500 12 Cordova 4,337,800 13 Nome 1,000,000 14 CORPS OF ENGINEERS MATCH 15 Program Formulation 100,000 16 Ketchikan Harbor Study 200,000 17 Wrangell 500,000 18 Kake 404,000 19 Metlakatla - Tamgass 850,000 20 Ouzinkie 1,300,000 21 Seward Harbor Expansion 2,925,000 22 Perryville Harbor Feasibility 102,100 23 TOTAL $32,000,312 24 GRAND TOTAL $269,795,987 25 (d) Funds may not be expended for a port or harbor facility described in sec. 4(c)(3) 26 of this section unless 27 (1) the port or harbor facility is located in a municipality in which the port or 28 harbor facility is owned and operated by the municipality; 29 (2) ownership of the port or harbor facility that is being funded has been 30 transferred from the state to the municipality by a transfer agreement under AS 35.10.120; and 31 (3) the state completes a bill of sale transferring the port or harbor facility from
01 the state to the municipality. 02 * Sec. 5. This Act takes effect July 1, 2000.